write an essay......
Answers
Explanation:
“Today, you all will shake each other’s hands before leaving the mosque. Perform Namaz (prayers) standing shoulder-to-shoulder and ankle-to-ankle in the rows! If anyone amongst you contracts Coronavirus, shoot me in the middle of the street and you will not be punished for that!” These words are not mine but were said by a Maulvi (Islamic cleric) in a mosque situated in Pakistan, the video of which I watched online a few days back.
The World Health Organization has advised practising social-distancing so as to reduce the spread of the Coronavirus, but in a country like Pakistan, where there are millions of such clerics promoting social gatherings and spreading misinformation (like the one mentioned above), WHO’s advise is considered a ‘Yahoodi Saazish’ (Zionists’ conspiracy) by many of its educated and illiterate citizens.
There is no good sentiment in the air on the trading floor of Pakistan Stock Exchange since the beginning of the month of March. And it all fell down like a house of cards on Monday (March 9th) when the Kingdom of Saudi Arabia announced waging price war against Russia to capture the oil market share after Putin’s ego went in against the US shale producers as the demand for crude has been sliding down with China, Europe and the rest of the world sneezing hard due to COVID-19 spread.
KSE 100 was down 2106 points just moments after trading started and circuit breaker had to be triggered to halt trading to reduce the floor’s temperature. But nothing can provide comfort to an investor in the middle of a looming recession. Karachi Stock Exchange after a series of bearish sell-offs since then is standing at 30,667 – 20pc down –as it went through highly volatile two weeks of trading. A sell-off will indeed leave the firms short of liquidity. Insufficient cash flow as a result of slowing demand up and down the country with 12.50% central bank’s policy rate will make it hard for the businesses to ‘breath’ normally having Chinese Virus around.
Almost 60pc of all that Pakistan exports is textile! The problem this sector is currently facing is that the majority of the raw material –dyes & chemicals– that is required to produce textile is imported from China. The industry highly contributes to the foreign currency reserves of the dollar-strapped country that finds itself quite frequently with just enough reserves to pay for 1.5 to 2 months of imports.
The textile industry has already been suffering from the liquidity shortages as the highly incompetent Imran Khan government after ending zero-rated status of the important export-based industries, failed to refund the sales tax proceeds and custom duty rebates of these firms. The last quarter of the ongoing fiscal year and the first two quarters of the upcoming fiscal year FY21 would bring unprecedented levels of cash-shortage problems as the investors have started investing in safe-haven stocks, gold and dollars.
Cash is everything as we move through one of the worst recessionary intervals. It’s quite foolish of Pakistan’s government to not to refund the amount that exceeds $130 million to the textile exporters since past thirteen months –who needs an enemy when your Prime Minister is Imran Ahmed Khan Niazi.
I was worried about the vast sums of hot money flowing in since past one year and that all ended up with almost $1.4 billion of the capital flowing out of Pakistan’s suffering capital markets during this month. The dollar is indeed controlling the ‘heaven’ at this point in time and Pakistani Rupee like any other emerging market currency is losing its value. That’s not going to help the exports as the flow of raw material plus the cash-crunch and capital outflow at an unprecedented pace poses tons of challenges to unprepared exporters and the government of Pakistan.
Furthermore, there is quite a chance for Europe’s and US’s ports to get overwhelmed with the incoming cargo from China in the next few weeks. I don’t believe a word of President Xi Jinping, that also includes what his administration is reporting about how China has ‘defeated the virus of its own making’. But just for the sake of making a point about the situation of global logistics, if China has stopped coughing on coronavirus, and the fact Europe and North America have failed to flatten the curve, the situation would get much difficult for Pakistani exporters. But strongly I believe that the situation is not under control in China just like in Europe and North America. Shortage of truck drivers and crane operators will reduce the operations at the ports. The virus is spreading and the labour is either sick or has been self-quarantined (practising social-distancing). A buildup of cargo at the ports of China, Europe and North America will continue digging holes in the global supply-chains. Pakistani exporters will face the delay in receiving the imports and sending the exports to the destination. Demand shortage will make things work.
I hope it helps you....
“Today, you all will shake each other’s hands before leaving the mosque. Perform Namaz (prayers) standing shoulder-to-shoulder and ankle-to-ankle in the rows! If anyone amongst you contracts Coronavirus, shoot me in the middle of the street and you will not be punished for that!” These words are not mine but were said by a Maulvi (Islamic cleric) in a mosque situated in Pakistan, the video of which I watched online a few days back.
The World Health Organization has advised practising social-distancing so as to reduce the spread of the Coronavirus, but in a country like Pakistan, where there are millions of such clerics promoting social gatherings and spreading misinformation (like the one mentioned above), WHO’s advise is considered a ‘Yahoodi Saazish’ (Zionists’ conspiracy) by many of its educated and illiterate citizens.
There is no good sentiment in the air on the trading floor of Pakistan Stock Exchange since the beginning of the month of March. And it all fell down like a house of cards on Monday (March 9th) when the Kingdom of Saudi Arabia announced waging price war against Russia to capture the oil market share after Putin’s ego went in against the US shale producers as the demand for crude has been sliding down with China, Europe and the rest of the world sneezing hard due to COVID-19 spread.
KSE 100 was down 2106 points just moments after trading started and circuit breaker had to be triggered to halt trading to reduce the floor’s temperature. But nothing can provide comfort to an investor in the middle of a looming recession. Karachi Stock Exchange after a series of bearish sell-offs since then is standing at 30,667 – 20pc down –as it went through highly volatile two weeks of trading. A sell-off will indeed leave the firms short of liquidity. Insufficient cash flow as a result of slowing demand up and down the country with 12.50% central bank’s policy rate will make it hard for the businesses to ‘breath’ normally having Chinese Virus around.
Almost 60pc of all that Pakistan exports is textile! The problem this sector is currently facing is that the majority of the raw material –dyes & chemicals– that is required to produce textile is imported from China. The industry highly contributes to the foreign currency reserves of the dollar-strapped country that finds itself quite frequently with just enough reserves to pay for 1.5 to 2 months of imports.
The textile industry has already been suffering from the liquidity shortages as the highly incompetent Imran Khan government after ending zero-rated status of the important export-based industries, failed to refund the sales tax proceeds and custom duty rebates of these firms. The last quarter of the ongoing fiscal year and the first two quarters of the upcoming fiscal year FY21 would bring unprecedented levels of cash-shortage problems as the investors have started investing in safe-haven stocks, gold and dollars.
Cash is everything as we move through one of the worst recessionary intervals. It’s quite foolish of Pakistan’s government to not to refund the amount that exceeds $130 million to the textile exporters since past thirteen months –who needs an enemy when your Prime Minister is Imran Ahmed Khan Niazi.
I was worried about the vast sums of hot money flowing in since past one year and that all ended up with almost $1.4 billion of the capital flowing out of Pakistan’s suffering capital markets during this month. The dollar is indeed controlling the ‘heaven’ at this point in time and Pakistani Rupee like any other emerging market currency is losing its value. That’s not going to help the exports as the flow of raw material plus the cash-crunch and capital outflow at an unprecedented pace poses tons of challenges to unprepared exporters and the government of Pakistan.
Furthermore, there is quite a chance for Europe’s and US’s ports to get overwhelmed with the incoming cargo from China in the next few weeks. I don’t believe a word of President Xi Jinping, that also includes what his administration is reporting about how China has ‘defeated the virus of its own making’. But just for the sake of making a point about the situation of global logistics, if China has stopped coughing on coronavirus, and the fact Europe and North America have failed to flatten the curve, the situation would get much difficult for Pakistani exporters. But strongly I believe that the situation is not under control in China just like in Europe and North America. Shortage of truck drivers and crane operators will reduce the operations at the ports. The virus is spreading and the labour is either sick or has been self-quarantined (practising social-distancing). A buildup of cargo at the ports of China, Europe and North America will continue digging holes in the global supply-chains. Pakistani exporters will face the delay in receiving the imports and sending the exports to the destination. Demand shortage will make things work.
hope it helps you !